In case you’re reading this article, you’re probably considering the idea of starting a real estate business. In terms of profitability, real estate is a solid bet for anyone wishing to enter the business world. However, this doesn’t mean that every new real estate business ends up being a success. In fact, according to some reports, 87% of real estate agents fail within their first five years. Unless you want your business to join them, getting everything right from day one is a prerequisite. With that in mind, here’s a guide that’ll help you get your business off to a great start.
Have a plan in place
No matter what kind of business you’re starting, it’s a good idea to write a business plan. This is especially the case with the real estate industry as the competition is getting stiff and you need to know how your business can stand out from the crowd. Also, getting into the world of real estate requires money and if you plan to apply for a loan, you need a business plan in order to secure one. Still, writing a business plan is a lot more difficult than it may seem. If you’ve never worked in real estate before, it’s recommended that you have an experienced professional help you during the planning stage.
Conduct market research
As mentioned above, more and more new real estate businesses are being started and beating your competition is the only way to succeed. It’s crucial to be informed from the very beginning and researching your competition even before you put up that “open for business” sign. Conduct market research and see exactly how many other real estate business are out there. Can you offer a better service than they do? Is there something you can use to ensure your business stands out? These are all important things to consider if you want your new business to survive. This is also a perfect way to get some real-world experience for those who’ve never worked in real estate before.
Consider flipping houses
When starting a business, most of us dream about making enough money so we can retire early or save up for a big yacht. Real estate commissions sure are great but if you’re looking to make even more money, flipping houses might be exactly what you need to do. Think about it, once you get the idea of how real estate works, you’ll know exactly what houses are worth investing in and which are not. Use your commissions to buy these houses, redesign or extend them, and later sell them for profit. In order to be able to do this, you’ll need to turn to a company such as Bayside Scaffolding whose scaffolders and project managers can help you build a perfect house.
Build your brand
Take a closer look at any real estate firm out there and you’ll see they have a powerful brand that makes it easy for them to attract new clients. The real reason why this is the case is that people usually trust strong brands more and with the money involved when buying or selling a property, they don’t want to take any chances. So, real estate branding is an important part of adding credibility to your new business and paying enough attention to it is a must. Start by choosing a memorable business name and designing a logo that represents it. Unless you have a team member who’s good with graphics, hiring a good graphic designer might be necessary.
Design your office
Depending on how many people you have in your team, you might be able to start your real estate business from home. This can turn out to be an amazing idea, especially if you’re still not sure what your target market is. Being bound to a physical location and realizing that that specific market doesn’t cut it for your business can be extremely costly. Therefore, start from your garage or home office and hire remote workers with whom you’ll stay connected using the web. Once your business starts growing and you know what your market is for sure, it’s time to start setting up a real office.
To sum up
Entering the real estate industry can be scary but if you do everything right, your business will be on the right path to success. Follow this guide to ensure you don’t miss any important steps when setting up your new business.